leave it there. see you tomorrow. peace out. ♪ ♪ s >> bret: one person's transparency another scare tactics. the spin cycle on overdriver before the sequester. this is "special report." ♪ ♪ ♪ >> bret: good evening. i'm bret baier. not only are democrats and republicans engaugeed in a pitch battle over the looming cuts in reduction of increased federal spending. they are at each other's throats over how the impact is explained. we report how personal inconvenience and national security is in play.

>> reporter: with four days to go the white house ratcheted up the campaign on sequester with officials all but saying the terror attacks could be more likely. nation's borders will be less secure and the government may have a heard time reacting to a natural disaster. >> people don't want to be less safe or secure. they want to thing that we are securing the border. they want to make sure there is a prompt and effective response if there is a disaster. >> reporter: asked if the nation will be less safe, homeland security secretary janet napolitano seemed to hedge, by referring to less important consequences like longer wait lines at cruise terminals. pressed by fox, napolitano said the security will be threatped. >> is the country less safe after sequester in your opinion as someone all over the issue in the last four years? >> i don't think we main tain the same question zester with sequester as without it. >> moments earlier on the

white house drive way after a peteing with the president, jindal charged that president obama is scaring the public. >> it can be done without the critical services. president needs to stop trying to scare the people. >> teachers and essential kateors will be laid off. tens of thousands of parents have to deal with finding child care for their children. hundreds of thousands of americans will lose access to primary care and prevent i care. >> transportation secretary ray lahood continues to warn about huge delays on coming at airports across the country. >> there has to be a furlough of air traffic controllers. that then will also begin to curtail or eliminate the studenopportunity to guide plann

and out of airport. rewriting history saying the president asks for substitute for sequester include spending cut and revenue he is moving the goalpost. a charm hotly disputed by the white house. >> first, the white house and the democrats were insisting on revenues as part of the trigger mechanism. the republicans refused. therefore, the sequester was the a chosen. >> that is an issue the republicans will not budge on. >> the president says we have to have another tax increase in order to avoid the sequester. you got your tax increase. time to cut spending in washington. >> reporter: boehner makes similar vows in the fiscal cliff fight and republicans are warning if he caves again he will get pushed out. >> i don't believe that speaker boehner would be speaker if that happens. he would lose his speakership.

>> reporter: meanwhile, secretary napolitano pushed back on republicans saying she is not trying to scare the public. she is trying to inform the public about the possibility of a sequester which now seems all but certain to happen. bret? >> bret: you spent the last couple of weeks as the president at the white house correspondence association fighting for more access to president obama. then he said this at the end of the remarks to the national governor's association. >> i look forward to our partnering. with that, what i want to do is clear out the press to take questions. thank you. >> bret: what was the reaction to that? >> frustrating because the q&a period is the most spon stainous uncrypted part. the white house opened up the q&a a couple of years ago when he went in to meet with the white house republicans in baltimore because it was in their interest to bring in cameras because he was confronting paul ripe over the ryan budget and medicare.

friday he met with the prime minister and took a question on friday. today not letting the media in was less vocal sipe. >> bret: we'll keep pressing. oklahoma start coburn is cal calling out administration. saying not filling the several posted openings would save $1.5 million. the list includes a staff assistant at the labor department starting at $5 #,000 a year. drivers for there 23 an hour. lawmakers brace for the next budget battle after the sequester fight. chief congressional correspondent mike emanuel tells us we are already counting down to another possible government shutdown. >> much of washington focused on the march 1 sequestration

date, there won't be long until there is a fight over the continuing resolution funding the government. after that, there is the debt creeling which was extented until may 19. the fiscal matters will be dominant much this year. >> we overspent trillion dollars every year, now five years in a row. you cannot continue to do that. at some point you have to get fiscal control. >> discussions are underway between the house republican and the senate democratic leadership on a continuing resolution or c.r. to fund the government until late september. congressman langford says the outcome of the sequest her have an impact. >> sequestration brings the number down to discretionary spending. c.r. continues with that number as well. in the next six months we have to honor the number. >> democrats push for funding at the current $1.43 trillion level rather that allowing it to dip below $970 billion. farmer aide to harry reid says the argument over government finances will only go so far.

>> a couple of weeks ago i would told you we'd suffer shutdown of government but the likely outcome is for congress to kick the can down the road on the continuing resolution or c.r. keeps most if not all the sequester in place. >> once that is cleared it won't be long until they bump in the debt ceiling in august of 2011 led to creation of the upcoming sequester cut. the white house continues calling for tax revenue. >> no question we need to reduce the testify is it forward. the president put forward plan to achieve that goal and it has routinely consistently included balance. >> the g.o.p. view of course is that the president got his tax increase in the focus on the upcoming matters should be on cutting spending.

if the impact is overblown, many republicans believe it will give them leverage in the next fights. >> bret: it could be a long few months. thanks. the senate finance committee will vote on the nomination as jack lew as treasury secretary tomorrow. he faced questions about personals ifs and his work as the president's chief of staff. another senate vote is expected tuesday. another vote for chuck hagel's nomination. they put a time vote before the recess. while washington careens on a path toward higher tax nation, some states are going the other way. 14 reduced the personal income taxes here. highlighted in red. one state seeking to join that list is north carolina. correspondent jonathan serrie tells us it's not all that state lawmakers are trying to get rid of. >> it will come to order. >> the g.o.p. majority and

state legislature and elected republican for, bob rusho is on a mission toe limbnate personal and corporate income taxes. >> we need to find solutions to replace the tax policy with the 21 z sunturery policy of progrowth. >> the personal income tax and 6.9% corporate income tax provides 60% of the state operating revenue. it would be replaced by the expanded sales taxes on home sales, pet grooming, gym memberships, car washes and haircuts. >> so the idea is the more you make, the more you spend. the more you spend the more you pay in taxes. what could be fairer than that. >> they say it's not fair. >> my family earning $24,000 a

year would see increase of $500. millionaire would see tax cut of $41,000. >> patricia lives on disability and os $75,000 in medical bills. she said it would break a stressed budget. >> we have to eat and we have to have toiletries or prescriptions that have to be filled or bills paid. you can't just tax everything and make people, expect people to be able to take care of those expences. >> proponents in the legislature are confident they will pass the tax reform by the end of this session. bret? >> bret: jonathan, thank you. gasoline continues the steady climb toward the $4 a gallon mark.

the national average is up 5 cents in the last week. stocks had the worst drop in three months after the prospect of europe debt crisis flaring up again. the dow lost 216 today. the nasdaq fell 46. how high do you think the gas prices will go? let me know on twitter. follow me @brettbaier. the trial begun over the 2010 gulf oil spill. it boils down to this. justice department and gulf coast state against b.p., transocean and halliburton. the purpose is to assign blame and penalties. almost everyone expect assettalment in the two-phase trial. the president's former mouthpiece tell us what you are not supposed to hear later in the grapevine. up next, if you want to be heard by the president. get out your checkbook. and these come together, one thing you can depend on is that these will come together.

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>> bret: general motors and the former finance company seek permission to give the top executives large pay packages. fox business reports g.m. wants to pay its ceo $11 million. allied financial wants to pay its top people $9.6 million and $8 million. the treasury department is reviewing the request. g.m. still has not fully repaid the taxpayer bail-out. nothing get's people's attention like money. shannon bream shows how the president's people offer special attention for cash. >> what is left of president obama's re-election campaign framework is morphing to a nationwide advocacy group known as organizing for action or ofa. tax exempt social welfare entyty headed up by former obama cam pape manager jim messina with the aim to funnel millions of dollars in efforts like tough new gun control laws. today critics are sounding the alarm over reports that ofa donors bringing in $500,000

will have quarterly meetings with the president. with other perks. >> a threat to our democracy. the only way to match it, match their millions of dollars is millions of voices ready to finish what we started in 2008. >> it's the height of hypocrisy because they want the organization to be tax-free, when we know that what it is going to be doing is helping the president pledcally. >> the white house pushed back against the criticism but stopped short to deny meetings for high dollar donors. >> the president should be clear we should do more to reduce the role of money in politics. >> reporter: even the media outlets the president routinely counts as friendly are asking questions, including the "new york times," and msnbc.

>> excuse us? it looks bad. looks like the white house is selling access. >> in the briefing, jay carney bristled at the suggestion. >> it's to rally support for policy agenda but a separate organization. the officials routinely interact with the outside advocacy organizations. >> it may be perfectly legal the arrangement has the skeptics questioning whether the president changed course. post-re-election. >> it's in conflict with the principle he laid out and abuse of the campaign finance law. >> we reached out for comment on the story and got no response. the white house says it is a distinct entity, it is notable that the verified twitter account for -- @barackobama says it's for organizing for action staff. >> bret: thank you. the supreme court is refusing to hear an appeal of a decision upholding the century old been a on corporate campaign contribution in

federal election. they want it to rule it been as the free speech right. they struck down prohibition on corporate spending by independent groups. but left the been a on direct contribution to candidates in place. up next, what is google telling people about you? later the new secretary of state tells the syrian opposition we're with you. [ male announcer ] susan writes children's books.

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>> bret: what you do on the internet says a lot about you. there are growing concern what is you click on in the privacy of your own home is not so private anymore. here is correspondent doug

mckelway. >> reporter: the founding fathers could not have imagined google but they might be dismayed how the internet giant routinely shares private user information with law enforcement. >> since 2010, we have seen a 136% increase in government request for user day the issued to google in criminal context. >> that admission from lawyer who said in 2012 alope they received 13,000 request from government agencies to search through the user data. for many privacy advocates the request fly in the face of the fourth amendment that says the right of the people to be secure in their persons, house, papers and effects against unreasonable searchs and says sures shall not be violated. >> they deserve mod earn day protection similar to what we had for mail through the postal service. what we all want is a limit on fishing expeditions.

>> right now it's weak. 56% of the request through subpoena. lower legal threshold requiring no search warrant or court order. 2 #% of the government searchs required warrant. only to 10% required court orders. >> there are circumstances we push back on the requests. when they make legitimate requests we have to provide the data. >> many say it's by an outdated law. the privacy act passed in 1986 before most miles per hours had internet. e-mailed stored on server for six months is considered abandon and it loses the privacy protection. some charge that google passively accepted most of law enforcement search request. at the same time it's a major supporter to the obama 2012 cam pape and help to create project narwal the most successful system in history. bret? >> bret: doug, thank you.

we just learned that president obama will meet with republican senators john mccain and lindsey graham tuesday to discuss immigration reform. meanwhile, high-tech leaders including the former head of aol and mozilla are organizing virtual march for immigration change and they want like-minded individual to flood offices by facebook, phone, twitter on agreeed upon date this spring. there is heavy snow piling up quickly in western oklahoma. even snow flous are getting stuck in the snow. state police are urging people not to travel in any of the regions. airport in the texas pan-hand are closed. national guard units are mobilized. late this afternoon, we received word that former surgeon general c. everett coop died. he served in the reagan and bush administration. raised profile of the office creating against aids and

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>> bret: now fresh pickings from the political grapevine. former press secretary robert gibbs says he was ininstructed never mention the drone program though he admits it is obviously happening. gibbs says, "when i went through the process of becoming press secretary one of the things that -- one of

the first things they told me you are not even to acknowledge the drone program. not especially discuss it exists." he says this underminds people's confidence overall in decisions their government makes. white house office of management budget has a detailed list of the potential impact of sequest tration cuts. agency by agency. one of the agencies in the report last september no longer exists. the national drug intelligence center was supposedly lose $2 million of the $20 million budget. the center closed june 15, 2012, three months before the report came out. finally, new york city controversial bans on sodas larger than 16-ounces goes in to effect next month.

last week, businesses started getting guideline from the health department. it appears there is no exception for drink containers intended to serve more than one person. the "new york post" reports that included in the ban are 2-later sodas delivered with a pizza. or pitchers for a table. or with a mixer and bottle service at nightclubs. the businesses say they will be forced to serve the individual bottles instead. much more expensive option for their customers. new secretary of state john kerry began a debut overseas trip with a focus on syria. in syria a huge explosion rocked damascus this evening. followed by gunfire. a report said five security personnel were killed there. chief washington correspondent james rosen is traveling with the secretary of state.

>> at 10 downing, secretary of state kerry found british prime minister cameron a genial host as he fits the special relationship between the u.s. and u.k. >> english breakfast to set your way. at the foreign mi ministry, he found the western powers to do more to help the sir yap rebels in the long bloody bat to overthrow dictatorial president bashar assad. >> we are preparing to do just that. in the face of such murder and threat and instability. our policy cannot stay static as the week goes by. >> a year ago he sided with the predecessor hillary clinton to arm that the u.s. should arm the rebels. >> i was a member of the senate. one of the voices on the outside. pushing for one thing or another. >> but president obama rejected the idea. now kerry cabinet officer for the first time in career must execute mr. obama vision and policy. >> the syrian opposition is

not going to be dappingalling in the wind wondering where the support is, or if it's coming. we are determined to change the calculation on the ground for president assad. >> kerry flue to berlin where he will meet tuesday with russian foreign minister labrov the man at the kremlin monday welcomed syria's top diplomat. >> those who want to continue the war until the bitter end try to stifle positive sentiment in the opposition to prevent dialogue. >> state department officials on three continent have been scrambling to persuade leaders from the syrian rebels not to boycott meeting with secretary kerry scheduled for rome later this -- [ loss of audio ] >> bret: that was james rosen traveling with the secretary of state kerry. sorry for the tape issue. south african olympic sprinter oscar pistorius presented himself to authorities. he is abiding by conditions of his bail. he is free pending trial.

on a charge he murdered his girlfriend op valentine's day. pistorius said he mistook the model for an intruder. we now have an end date for the castro family rein over cuba. raul castro says the five-year term will be his last. the 81-year-old and his brother fidel ruled cuba since 1959. pope benedict changed the rule about his succession. religion correspondent lauren green explains there is uncertainty and controversy about the replacement process. >> pope benedict xvi signed a special legal document to clear the way for cardinals to move up the start date of the conclave once the papal seat is vacated. 15-day transition period to start the process and choose a new pope was set in 1996 and could only be changed by another pope. one of his last official acts before stepping down thursday.

no date has been set for conclave to begin. >> we cannot expect it to take place before marm 1. we have no other information until cardinals decide and general congregation when the date will come. >> there is going to be one less cardinal voting in conclave. o'brien of scotland british highest ranking catholic leader is retiring and will not be attending. the resignation as archbishop of st. andrews and edinburgh is part of mandatory age requirement but comes in the wake of allegation of misconduct. british newspapers report o'brian has be accused by three current priests and one former priest acted inappropriately with him in the 1980s. the cardinal said he won't attend the conclave because he does not want media attention focused on him in the most important session if rome. in order to have a new pope by the start of holy week on

march 24, he would have to be installed by sunday, march 17. bret? >> bret: thank you. we are days away from the sequester. there is more drama before and after that. we get update with the fox all-stars when we return. this is so sick! i can't believe your mom let you take her car out. this is awesome! whoooo! you're crazy. go faster! go faster! go faster! go faster! no! stop...stop... go(mom) i rais my son to bester! careful... hi, sweetie. hi, mom. (mom) but just to be safe... i got a subaru. (announcer) love. it's what makes a subaru a subaru. ah. 4g, huh? verizon 4g lte. 700 megahertz spectrum, end-to-end, pure lte build. moe most consistent speeds indoors or out. and, obviously, astonishing throughput. obviously...

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we also need republicans to adopt the same approach to tax reform that speaker boehner championed fro champions ago. under our concept of tax reform nobody's rates would go up, but we'd be able to reduce the deficit making some stuff, smart, spending cuts and getting rid of wasteful tax loopholes that benefit the well off and the well-connected. >> the president says we have to have another tax increase to avoid the sequester. well, you got your tax

increase. time to cut spending here in washington. >> bret: it didn't sound like there would be progress with four days to go before the sequester kicks in. you don't know. in washington anything can happen. the white house is putting out all the things that could happen. department of the homeland security and the secretary janet napolitano talking about a national security issue at the white house. >> we can't maintain is same level of security with or without sequester. what we are going to the an doing everything we with the limit that sequester gives up. but if you have 5,000 fewer border patrol agents you have 5,000 fewer border patrol

agents. that has a real impact. i'm not here to scare people but i am here to inform. let them plan. they will see impact on the daily lives and adjust to make arrangements accordingly. >> what about this? >> bring in the panel. steve hayes and welcome jeremy peters for the "new york times." and charles krauthammer. we hear from the guys all the time. let's start with you. increase and decrease in the federal spending and the bottom line is because of the way the sequester is structured it has impact in places. what about the back and forth we saw today? >> well, i think what you saw from republicans on capitol hill, they are worried about getting out ahead of the president. thigh feel like the president is winning the p.r. cycle. in a lot of way he is.

bully pulpit of the presidency. they can only command so much attention being leaders in congress. the new psychois one of the interesting things about that dynamic right now. for the first time since the inauguration, you have a news psychothat is unfavor to believe the president. you won't hear about the policies. you won't hear about the top take the mainstream media likes to talk about now, immigration reform and gun control. so this is on the turf more friendly to republicans. budget and economy. >> bret: there is a part of as we put up with the sequester is, for focks, about understanding it. we have talk about it here. wi try to explain it. it's complicated.

people glaze over about it. how much of america is paying attention to it? >> not much. at least now. that could change. the administration is paying a picture of horror on earth. the united states will plunge in chaos if it happens. they could overplay their hands. if you see longer lines for tsa to get through an airport, if you don't see the dreadful consequences that the administration is talking about, they could be they could overplay their hands. one interesting thing to look at as the debate unfolds in the next week or month, is if the administration makes an arguen't about the small ball issue. this is small in the context of the broader debate when we don't deal with the bigger issues. we know the entitlement drive the debt and we know the president hasn't done much. he hasn't put out paper proposals about reforming medicare, medicaid, social security.

you had debbie stabenow today rejecting changes to medicare. that will be the big question. can republicans turn and make it about the big issue to say the president isn't, can't cut $40 billion in domestic discretionary funding how can we count on him to deal with these big issues? this is the point. will the pressure change? it could happen and the republicans make them happen. at least that is the democrats have been talking that way. could they turn the pressure like the speaker tried to do to deal with the debt and deficit and attractive politically to enough people in america? >> cutting is attractive in the abstract but it rarely is because there are constituencies that affected if you have a cut.

but the assumption is every time of expansion in the federal government we reached platonic idea. if you cut a dollar off that, as if god devised exactly the size of government america needs and any cut leads to armageddon. two cents on the dollar. every dollar they spend on the day 35 cents is borrowed from the chinese and others. what is going on here is ending up in a position where we borrow not 35, but 33 cents. example of the cynicism, lobby for the liberal causes leading 3,000 organizations opposing the cuts. who told the "washington post" the following -- the worst case scenario is the sequester hit and nothing really bad happens. think of the cynicism of that. the worst case scenario is that the government makes a

small, minuscule cut in spending on the way to beginning of a journey of recovery in to fiscal health, and that it doesn't hurt us. that we come out of it alive. think of how they are weighing the national interest that needs cut in spending. the parochial special interest. >> bret: there was talk of a bill that republicans try to move forward to fbi the agencies, including the pentagon the ability to privatize. in one instance to say cut the waste, fraud and abuse they could find and not hurt the personnel. is that possible? >> it doesn't look like it. both sides are dug in.

any for capital hill is for show. that is an issue that is punted to the next crisis deadline. >> which is the c.r., the continuing resolution. >> exactly. when funding if government rups out. hard and fast deadline. that is different from what we talk about now. people will notice government shutdown. they may not immediately notice the impact of the sequester. what is fascinating about the debate is the reason both sides are amped up. nobody knows what is going to happen. nobody knows if there are fewer teachers in school or fewer tsa agents and how it affects waiting in line at the airport. >> bret: it's your sense that democrats reach the point they are now pulling back the fight to go to the c.r.? to march 27 and continuing resolution? >> i think both sides are. >> bret: you agree? >> i think they made the case. what we have seen is largely a p.r. battle. ongoing. from the dueling press

conferences and speeches today that is likely what we are going to see. then everybody will reassess what happens on marm 1 and afterwards -- march 1 and afterwards and reassess where we are from that point on. >> bret: because of the notifications a lot of furrows can't go in place until april or end of april. >> it will be to stay with the resolution and leave it open. that would put republicans in a stronger approximation than fiscal cliff and stronger than now. >> bret: next up. paying for access for the president and his people. [ coughs ] [ angry gibberish ]

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the lobbyists and the special interest who turned our government to a game only they can afford to play, they write the checks and you get stuck with the bill. they get the access while you get to write a letter. they think they own this government but we are here today to take it back. >> bret: that was then senator obama launching his campaign in 2007. talking about the access of the big mup in political campaigns. having influence in policy. now former campaign manager messina has a group, transformed, organizing for action. advocacy group.

they are bringing in donors to bring in $500,000 and they have quarterly meetings with the president. big donors. they also meet with president obama at the white house. unlimited personal and corporate donations. there are critics of this. especially about the influence of money and campaigns. back with the panel. steve, what about this? the white house putting back saying that ofa is separate and still committed to reducing the role of money in politics. >> right. >> jay carney has a difficult job to defend them on these points but he responded with a statement. reading it with a series of non-sequitur of how the president believes broadly in campaign reform but he didn't answer in a convincing way the charges about pay for play. are people going to pay $500,000 and get regular meetings at the white house? he didn't answer that very

convincingly. this is not i'd say enough for the president to favor abstract way. the campaign policy reform. there was a statement from seven where they le make doing politics in the country but today there was a clip in the first panel that the president said we don't want well off winning in politics all the time. that sounds like what is going on here. >> bret: jeremy? >> i think republicans hit on a remarkable talking point. this could be their lip con bedroom applying to obama. the question is whether public holds obama to a tough standard on that. that is where it gets murkier. you ask legislators why they never pursue campaign finance in addition to the obvious self-interest. not a winner with the public. people don't think about something, not something they

get their heads around. there is a practical question of do the american people believe that the president should fight with one hand tied behind his back? these are the rules that exist. >> bret: to be fair, jay carney said, that that president and democrats on capitol hill backed dclose acts and loopholes. more transparency to the political system but blocked by the republicans. >> bret: it is always republicans preventing obama acting ethically. remarkable how it happens. he descended out of mount olympus. that is where he started out. in 2007, he was a man who would redeem politics to eliminate the money. now he is breaking new ground in lobbying, selling access. peddling influence. he is demonizing the rich

every other day. not paying their fair share for crushing hopes to the working class. a subset of the rich they like. it will give him half a million dollars. in turn he lets them sit on advisory committee to get access to him quarterly. forbe times a year. advisory committees are when you pick people with wisdom and experience that give you advice from the outside. his idea is whatever policy he supports the essence of this organization. he will have money and part with it. that is his idea of advice. it's remarkable. he stoops to conquer and it is unpretty regarding if it's winning issue with the public or not. >> bret: does he take a hit

for it? >> no. jeremy is probably right about the way the the public views th. >> bret: jeremy, thank you for being here. that is it for the panel. stay tuned to see something from anchor 101. it's not working! yes it is. welcome to tyco integrated security. with world-class monitoring centers and thousands of qualified technicians. we've got a personal passion to help your business run safer, smarter, and sharper. we are tyco integrated security. and we are sharper. i worked a patrol unit for 17 years in the city of baltimore. when i first started experiencing the pain, it's hard to describe because you have a numbness but yet you have the pain like thousands of needles sticking in your foot.

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>>. >> bret: finally tonight. some anchors go through local news. i did that. you learn a lot station to station. one thing is not to do and this one of them. ♪ ♪ >> our coverage part of the telegraph herald looked at the debate over childhood vaccination. >> we interviewed a mother. she is against vaccination. >> scary. [ laughter ] >> for more on this story check out the edition of the